Vodafone Idea's Critical Warning to the Government

Telecom giant Vodafone Idea Limited (VIL) has issued a stark warning to the Department of Telecommunications (DoT), stating its inability to continue operations beyond FY26 without immediate government support on adjusted gross revenue (AGR) dues. The company highlights the urgency of intervention to prevent a complete operational halt.

The Stakes of Government Inaction

In a detailed letter to the Telecom Secretary, Vi CEO Akshaya Moondra emphasized that without timely government assistance, the company's discussions with banks for essential funding would stall, leading to a point of no return. The Supreme Court has agreed to hear Vodafone Idea's plea for a waiver of approximately Rs 30,000 crore in AGR dues, with a hearing scheduled for May 19.

Potential Consequences of No Support

The company outlined dire consequences, including the halt of operational improvements and the exhaustion of funds raised over the past year, which would bring capital expenditure to a standstill. Vodafone Idea warned of potential insolvency proceedings under the NCLT, which could disrupt services for around 200 million subscribers and devalue its network and spectrum assets.

Appeal for Government Support

Vodafone Idea urged the government to consider its relief proposal, which includes treating the principal demand till FY19 as final and providing a complete waiver on interest and penalties. The company also requested extensions on spectrum-related payments to ensure its survival and continued contribution to the Indian economy.